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Over 4m households are feeling the pinch of financial pressure
The number of households experiencing financial pressure has increased by 10 per cent since the start of the pandemic.
Over 4m households are feeling the pinch of financial pressure
The number of households experiencing financial pressure has increased by 10 per cent since the start of the pandemic.
As inflation takes hold and the cost of living continues to climb, research has found that 4.1 million Australian households are currently under financial pressure.
Western Australia is home to the most financially pressured households in the country, according to the new data released by digital financial advice platform Otivo and research firm Digital Finance Analytics.
Meanwhile, the ACT was found to have the least financially pressured households versus the other states and territories.
To measure financial pressure, the research examined the cash flow of households as well as the level of cash and liquid assets that could be used in the event of an emergency.
A financial pressure score was then assigned to postcodes to indicate the likelihood that households in a particular area would run into financial pressure.
The research indicated that financial pressure was correlated with a number of issues including overspending, poor budget management, loss of employment, health issues, reduced government benefits, relationship breakdowns and drops in income.
The average financial pressure score per household among the states and territories ranged from 8.2 in the ACT to 38.9 in Western Australia.
NSW had the second lowest average score closely followed by Victoria, the Northern Territory, Tasmania, Queensland and South Australia.
Meadow Heights (3048) in Victoria was given a score of 5, the lowest in Australia, while a number of postcodes received a score of 6 including Kaleen (2617), Calwell (2905) and Latham (2615) in the ACT and Rose Bay (2029) and Ermington (2115) in NSW.
Braybrook (3019), Tullamarine (3043) and Carlton (3053) in Victoria and North Hobart (7000) in Tasmania also received a score of 6.
The most financially pressured households in each state and territory were found in:
- NSW: Newport (2106)
- Victoria: Mangalore (3663)
- Queensland: Burketown (4830)
- SA: Glenunga (5064)
- WA: South Tammin (6409)
- ACT: Yarralumla (2600)
- Tasmania: Highclere (7321)
- NT: Bakewell (0832)
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